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Kelso in advance talks to sell Custom Building Products to Quikrete

August 15
9:34 PM 2013

For a deal that could merit Kelso & Co. between USD700 million to USD800 million , the private equity company had hired Barclays Plc to look for a buyer for its California-based home furnishings and construction home depot, Custom Building Products.  This is according to three unnamed people familiar with the deal but refused to be named since the matter was not yet officially made public.

One of the most established firms in private equity investments more often focused on leveraged buyouts and growth capital transactions, Kelso had invested in more than 115 companies throughout a variety of sectors like communications and manufacturing.  In 2005, it bought Custom Building Products for USD600 million.

Recent outlook for housing and building products markets experienced a boost chiefly due to low interest rates and rising rental costs.  This prompted some buyout firms like Kelso to divest assets in these markets either through private sale or public offering as the U.S. housing market seem to rebound from a prolonged slump as a result of the credit crisis.

When asked to comment on the matter, representatives for Kelso and Barclays both declined to provide any response.  Quikrete and Custom Building Products also did not respond to requests for comment.

Quikrete is a private company based in Atlanta.  According to its website, it manufactures packaged concrete and cement mixes for commercial building and home improvement industries in the United States and Canada.

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